Hello, the endowment effect is quite interesting. And if we look at what's behind a test drive for Favorite maker of a car, you will see that it's not just about the test, there is something more. It is the feeling of ownership. Car salespeople are keen for you to take a test drive before you purchase. They know that the more the more time you spend driving the car the more involved you become in respectively, the stronger the feeling of ownership becomes. shops are happy to offer a money back with no questions asked guarantee and option You'll figure the money back option into your cost benefit calculation about whether to take something home but once you've got it home, your preferences realign the item is now yours.
So you're far less likely to take it back to the shop even if it doesn't turn out to be as good as You thought when you bought it, your customers attribute a higher value to things they already own. Your task is to help customers increase their ownership in your product or brand. And here is the general statement. Make your customers feel they play an important role in the product or brand in they will be more willing to buy things from you. I want to share a quick story. One day a friend of mine called me to go out and have a coffee with him in a quiet place in our town.
I hadn't had the chance to talk to my friend for a long time, and I was happy to see him. When we got to the place we started chatting and he shared that he had started working in the insurance industry. He also had some documents with him. And then it dawned on me that he would want to sell me life insurance or any other insurance type as he began explaining passionately about Benefits I would get if I agree to buy insurance, something may make a huge impression. He was holding an insurance policy. And because we are friends, he knew my full name.
He had written my name on the policy before we got to the coffee. Then he gave it to me to read about the benefits. I was holding it. And as my name was written on the insurance, I felt as if this piece of paper was mine, it belongs to me, having my name on a piece of paper was much more impactful, then just a blank document. This friend of mine put the endowment effect into practice, and I want you to do the same. How can you apply the endowment effect?
If you're a blogger, you can think of a way to increase the ownership of your readers. Ask them to give you ideas for your next blog post and then you write the post. feature their names at the end of it, those people will be thrilled that promise you and the connection between you and your readers, the bond will become stronger. This is what we call a win win situation. The next thing is common sense, but it is quite effective. Ask your customers for feedback and suggestions.
How you can do something better. your blog, your website, your online course, your next ebook, etc. Remember, we're talking about a feeling of ownership, not an actual ownership. You don't give away shares of your company, but make your customers feel they're part of something big. You made them feel their opinion matters. You make them feel valued.
This is the beauty of the endowment effect. See, I don't know anything about your business. Maybe it can be challenging to apply the endowment effect, but maybe it can be the one single thing you need to skyrocket your business Thank you for watching and don't forget to have a look at the take action PDF files